Want $1,000 in dividend income? Here’s how much you should invest in Starbucks stock.

Starbucks (SBUX 1.72%) has been all over the news after pushing CEO Brian Niccol to help it return to healthy growth. It has struggled to meet demand and generate growth and is in urgent need of a turnaround.

But whether or not Starbucks shares win or lose this year, one thing shareholders can keep is the dividend. Starbucks is actually a fabulous dividend stock, and you can buy Starbucks stock on the decline, enjoy passive income, and wait for the stock to bounce back.

A dividend as strong as his coffee

Starbucks doesn’t have a long history as a dividend stock. It started paying a dividend in 2010, but has grown it at high rates, and is now up over 1,000% since inception.

He paid and raised her through thick and thin; Starbucks has been through some serious volatility since the pandemic began, including major sales declines and losses, but the dividend has been solid. So, while the track record is short, it’s impressive. Starbucks dividends yield 2.5% at the current price, nearly double the S&P 500his average of 1.3%.

Starbucks’ annual dividend stands at $2.28 per share right now, so to get $1,000 in dividends from Starbucks this year, you’d need to own 439 shares. Your total cost for that amount of Starbucks stock at today’s price of $93.20 would be $40,520.

If you have a large portfolio and are looking for a depressed stock to risk, Starbucks stock could be a candidate. There are reasons for confidence in its recovery potential. For most investors, putting that much money into a stock that has been volatile for some time, is on its fourth CEO in the same span of years, and is down 20% over the past three years may not be the right tactic.